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credit entitlement of GST ITC for GTA services.

Shivani Malani (Student CA Final ) (49 Points)

06 July 2017

shall service receiver be entitled for credit of GST paid for GTA services?

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11 Replies

Saurabh Gupta (Chartered Accountant) (60 Points)
Replied 06 July 2017

GST has to be paid on Reverse charge basis in case of GTA. So Service provider (transporter) will not be entitled to ITC since he will not be paying GST, but the service recipient can avail ITC of GST paid by him on reverse charge basis.

It should be noted that GST Liability for reverse charge can only be paid using e-cash ledger and not through credit ledgers.

2 Like

kapil (accountant) (178 Points)
Replied 06 July 2017

if he took registration under gst ..can GTA take ITC..please reply

Sachin Rajput (account exe) (593 Points)
Replied 06 July 2017

But what if GTA paid Revese charge tax on Rent for office, will he get credit for this ?

Saurabh Gupta (Chartered Accountant) (60 Points)
Replied 06 July 2017

@ Kapil

GTA service is specifically covered under Reverse charge if service recipient is

any factory registered under or governed by the Factories Act, 1948;
any society registered under the Societies Registration Act, 1860 or under any other law for the time being in force in any part of India;
any co-operative society established by or under any law;
any person registered under CGST/SGST/UTGST Act;
any body corporate established, by or under any law; or
any partnership firm whether registered or not under any law including association of persons.
Casual taxable person

In all these cases, GST will be paid by service recipient under reverse charge irrespective of whether GTA is registered or not and thus no ITC will be available for GTA in these cases but will be available to the service recipient.

Saurabh Gupta (Chartered Accountant) (60 Points)
Replied 06 July 2017

@ Sachin

If GTA pays any tax under reverse charge, then he will get credit for the same.

The concept is simple, credit will be available to the one who has borne the incidence of the tax.

Shivani Malani (Student CA Final ) (49 Points)
Replied 08 July 2017

@ saurabh Gupta
thanks

1 Like

kapil (accountant) (178 Points)
Replied 08 July 2017

okay what if GTA hires a truck on rent he will pay gst for the same..and also pays gst for his office if it is on rent..so I want to knw is there any other way for GTA by which he can get ITC..

Saurabh Gupta (Chartered Accountant) (60 Points)
Replied 08 July 2017

@ Shivani

@ Kapil GTA will get ITC on all the taxes he will pay whether on purchasing from a registered dealer or under reverse charge. GTA in no way can get credit if he gives services to those listed in the list above, it will get covered under reverse charge only.

Atish Agrawal (3 Points)
Replied 10 July 2017

RCM Service Tax credit for GTA was earlier available for Input goods only, does the same rule apply here also? Can registered companies who have paid freight charges for sales(Output) can claim credit on RCM paid tax?

Shivani Malani (Student CA Final ) (49 Points)
Replied 15 July 2017

tax paid shall be entitled for credit whether for good inwards or outwards.

Adv.Virendra Lathkar (I.T & GST Practitioner) (24 Points)
Replied 20 January 2018

I want know that if Goods transporter who is handling & transport contractor, purchases trucks for his business use, can he avail the ITC on this truck purchase?